CompuGroup - today's loser, tomorrow's ...

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German CompGroup was today's biggest loser on the German MDAX (Mid-Cap Exchange) with -11.47%. This is what caught my attention and to look at the company closer. CompuGroup develops and sells software and solutions for the healthcare sector worldwide. It operates in four segments: Ambulatory, Pharmacy, Hospital, and Consumer&Health Management Information System. So more or less all kinds of IT solutions for supporting hospitals, doctors, and everything around it!

The closing price today €64.85, the 52-week high was €85.40 and the 52-week low was €62.70 - today it was a short time below €60, but I didn't get any.

The last years have been very good for CompuGroup

On the 1-y, 3-y, 5-y, and 10-y were all positive with +4%, +70%, +102% and +565%

The long-term (10-year) chart should like good, so let's have a look

This is how an awesome chart should look like, a very steady upward trend✅

So who is the major stockholder, if any

We see that the Gotthardt Family owns 45% of the company, which is from the owner Frank Gotthardt who founded the company. On top of that, we see as well Fidelity, Vanguard as part-owners ✅

Next the Balance Sheet and Assets

We see a 5-year growth of the overall Assets, coming mainly from Goodwill and Intangibles ("Inmaterielle Vermögensgegenstände"). But everything else is growing as well, looks good!

Equity and Liabilities side

We see that one-third is Equity and that two-thirds are liabilities! The Shareholder Equity has tripled the last 5-years, but the liabilities have not even doubled, a good development for the shareholder equity. ✅

Income Statement next

We see good growth in revenues ("Umsatz") of 55% or ~€300 million. We see an equal good development in the EBIT ("Operatives Ergebnis"). In 2020 they invested heavily and took a bigger loan to support this investment with external money! ✅

ROE is at 11.46% and the EBIT margin is 14%, and the company is well-positioned for 1) the digitalization in the health sector and 2) the fact that people are getting older and require more health care!

The dividend yield is low, at 0.7%, but it is a good sign that the payout part of the profit if they cannot invest it better internally!